Following is the text of the letter (dated April 29, 2006) written by Shri L.K. Advani, Leader of the Opposition (Lok Sabha) to Prime Minister Dr. Manmohan Singh on the alleged extortionist conduct of Shri Dayanidhi Maran, minister of communications and information technology, in his dealing with the Tata Group.
Dear Dr. Manmohan Singhji,
I am constrained to bring to your attention disturbing media reports about the alleged unbecoming conduct of Shri Dayanidhi Maran, a minister in your cabinet who holds the charge of ministry of communications and information technology. A recent report in the New Indian Express, which is published from some 15 centres in Southern India, has alleged that the minister held out threats to Shri Ratan Tata, one of the most respected captains of Indian industry, and attempted to extort from him one-third ownership rights and management of the Tata group's DTH project for his family.
The media revelations, in brief, are as follows. Shri Kalanidhi Maran, the elder brother of the minister, met Shri Tata, who heads what is universally regarded as the most ethical and upright business group in India, and demanded that he be taken as a promoter of the Tatas' DTH project, in which the Tatas and Star TV are co-promoters in the ratio of 80% and 20% respectively. Shri Kalanidhi Maran allegedly demanded that he be given one-third of shares at par, irrespective of their real or fair value. Although Shri Tata declined, the demand seems to have persisted. At some point, the minister himself is reported to have met Shri Tata and insisted that he accede to the Maran family's demand.
When Shri Tata reportedly wrote to the minister saying that shares could not be given as demanded, Shri Maran allegedly threatened him with dire consequences for Tata Telecom. Subsequently, all ministerial clearances of Tata Telecom were reportedly stopped, which put the company to competitive disadvantage and financial losses.
In this context, media reports have also highlighted a salient "conflict of interest" between Shri Dayanidhi Maran's infotainment business and his position in your government as the minister of communications and IT. In this capacity, he controls the grant of spectrum for all wireless businesses including DTH and FM radio, in which Sun TV, of which he is a promoter, has been a beneficiary of licences granted by his ministry. The family of Shri Dayanidhi Maran and his brother owns Sun TV, which is a major infotainment company in South India. It is reported that the offer document filed by Sun TV with SEBI for its public issue, which opened and closed sometime back, mentions Shri Dayanidhi Maran as one of its promoters without disclosing that he is a cabinet minister who holds a portfolio that is directly linked to Sun TV's area of business.
You will agree that what is reported is not a simple allegation of favouritism or bribery. Allegation of extortion by a minister is something unprecedented in Indian politics. The issue also involves political ethics and strikes at the root of good governance.
Under these circumstances, I strongly urge you to institute a credible investigation into the allegations against Shri Dayanidhi Maran and take suitable action if the allegations are found to be true. As a first step, propriety requires that you immediately shift Shri Maran to some other ministry, in order to avoid obvious "conflict of interest" between his family business and his continuance in the ministry of communications and IT.
With warm regards,
Yours sincerely,
(L.K. Advani)
L.K. Advani
Leader of the Opposition (Lok Sabha)
Camp: Tiruvanathapuram
April 29, 2006
Leader of the Opposition (Lok Sabha)
Camp: Tiruvanathapuram
April 29, 2006
Dear Dr. Manmohan Singhji,
I am constrained to bring to your attention disturbing media reports about the alleged unbecoming conduct of Shri Dayanidhi Maran, a minister in your cabinet who holds the charge of ministry of communications and information technology. A recent report in the New Indian Express, which is published from some 15 centres in Southern India, has alleged that the minister held out threats to Shri Ratan Tata, one of the most respected captains of Indian industry, and attempted to extort from him one-third ownership rights and management of the Tata group's DTH project for his family.
The media revelations, in brief, are as follows. Shri Kalanidhi Maran, the elder brother of the minister, met Shri Tata, who heads what is universally regarded as the most ethical and upright business group in India, and demanded that he be taken as a promoter of the Tatas' DTH project, in which the Tatas and Star TV are co-promoters in the ratio of 80% and 20% respectively. Shri Kalanidhi Maran allegedly demanded that he be given one-third of shares at par, irrespective of their real or fair value. Although Shri Tata declined, the demand seems to have persisted. At some point, the minister himself is reported to have met Shri Tata and insisted that he accede to the Maran family's demand.
When Shri Tata reportedly wrote to the minister saying that shares could not be given as demanded, Shri Maran allegedly threatened him with dire consequences for Tata Telecom. Subsequently, all ministerial clearances of Tata Telecom were reportedly stopped, which put the company to competitive disadvantage and financial losses.
In this context, media reports have also highlighted a salient "conflict of interest" between Shri Dayanidhi Maran's infotainment business and his position in your government as the minister of communications and IT. In this capacity, he controls the grant of spectrum for all wireless businesses including DTH and FM radio, in which Sun TV, of which he is a promoter, has been a beneficiary of licences granted by his ministry. The family of Shri Dayanidhi Maran and his brother owns Sun TV, which is a major infotainment company in South India. It is reported that the offer document filed by Sun TV with SEBI for its public issue, which opened and closed sometime back, mentions Shri Dayanidhi Maran as one of its promoters without disclosing that he is a cabinet minister who holds a portfolio that is directly linked to Sun TV's area of business.
You will agree that what is reported is not a simple allegation of favouritism or bribery. Allegation of extortion by a minister is something unprecedented in Indian politics. The issue also involves political ethics and strikes at the root of good governance.
Under these circumstances, I strongly urge you to institute a credible investigation into the allegations against Shri Dayanidhi Maran and take suitable action if the allegations are found to be true. As a first step, propriety requires that you immediately shift Shri Maran to some other ministry, in order to avoid obvious "conflict of interest" between his family business and his continuance in the ministry of communications and IT.
With warm regards,
Yours sincerely,
(L.K. Advani)
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